The Food and Agriculture Organization of the United Nations (FAO) has reported an increase in global food prices in July, which was caused by the termination of the Black Sea Grain Initiative.

The FAO Food Price Index, which tracks monthly changes in global food prices, reached an average of 123.9 points in July, up 1.3% from the previous month and 11.8% lower than in July 2022.

A sharp rise in the oil price index was the main reason for the overall increase in food prices, rising by 12.1% compared to June after a seven-month decline.

In particular, global oil prices rose by more than 15%, mainly due to uncertainty over export supplies after Russia's withdrawal from the grain deal.

Palm, soybean, and rapeseed oils also rose due to concerns about production prospects in major producing countries.

The FAO rice price index increased by 2.8% month-on-month and by 19.7% year-on-year, reaching its highest nominal level since September 2011 due to India's ban on rice exports.

As for other food products, the FAO price indices for sugar, dairy products, meat, and cereals showed a decline.